My interpretation is that some software installed on these older computers was re-installed on the newer computers, without deleting it from the older computers.
It wouldn't be software like the OS or the Office suite, as that would be bundled with the computer by the OEM. I figure it is something used by the engineers and not the clerical staff, like Visual Studio.
Maybe it wasn't Windows but this is still a bonehead move by this guy, passing on the trash of the previous user not to mention software that is not licensed for unlimited copy. Visual Studio is some of the most expensive software there is, too. IMO professional opinion, his whole operation is a joke.
Just as a side note, and without trying to get into this arguement, I am willing to bet they took the time to delete all of the personal files created by the "engineers" from those same computers and probably transferred those files to the new machines.
That said, I don't blame Ball at all for doing what he did. From all appearences an ex-employee had a problem with him and the software auditors took advantage of it. One might hope that in the future, the auditors might suffer from a similar fate.